Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Order of Priority On Jan. 1, 2020, the Mones, Pitular and Tuazon Partnership was formed with initial investments by the partners as follows: According to

image text in transcribed
Order of Priority On Jan. 1, 2020, the Mones, Pitular and Tuazon Partnership was formed with initial investments by the partners as follows: According to the partnership agreement, profit or loss is to be divided among the partners as follows: 1. Salaries of P120,000 for Mones, P60,000 for Pitular and P60,000 for Tuazon. 2. Interest at 5% on the original capital balances. 3. The remainder to be divided among Mones, Pitular, and Tuazon in a ratio of 4:1:1, respectively. The partnership reported profit of P350,000 for the year ended Dec. 31,2020. Required: Determine the partners' share in the profit under each of the following independent situations: 1. Partner's salaries and interest on capital balances should be fully allocated and any deficiency between these allocations and profit is to be divided among Mones, Pitular, and Tuazon in the ratio 4:1:1, respectively. 2. Partner's salaries and interest on capital balances should be made only to the extent that the profit can provide. Order of Priority On Jan. 1, 2020, the Mones, Pitular and Tuazon Partnership was formed with initial investments by the partners as follows: According to the partnership agreement, profit or loss is to be divided among the partners as follows: 1. Salaries of P120,000 for Mones, P60,000 for Pitular and P60,000 for Tuazon. 2. Interest at 5% on the original capital balances. 3. The remainder to be divided among Mones, Pitular, and Tuazon in a ratio of 4:1:1, respectively. The partnership reported profit of P350,000 for the year ended Dec. 31,2020. Required: Determine the partners' share in the profit under each of the following independent situations: 1. Partner's salaries and interest on capital balances should be fully allocated and any deficiency between these allocations and profit is to be divided among Mones, Pitular, and Tuazon in the ratio 4:1:1, respectively. 2. Partner's salaries and interest on capital balances should be made only to the extent that the profit can provide

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting And Strategic Human Resource Management

Authors: John Innes, Reza Kouhy

1st Edition

1859714862, 978-1859714867

More Books

Students also viewed these Accounting questions

Question

6. Explain the strengths of a dialectical approach.

Answered: 1 week ago